KARACHI: Meezan Bank Limited, which is providing Sharia compliant banking and financing in Pakistan, on Tuesday declared Rs6.1 billion after tax profit for the quarter ended March 31, 2021.
The net profit of the bank increased by 11 percent during the first quarter (January – March) 2021 when compared with the net profit of Rs5.5 billion in the corresponding period of the last fiscal year.
According to the financial results of the bank, the profit/return earned on Islamic financing and related assets, investment and placements fell to Rs24.23 billion during first three months of the calendar year 2021 as compared with Rs29.83 billion in the corresponding months of the last year.
Similarly, profit on deposits and other dues expensed also reduced to Rs9.17 billion during the period under review as compared with Rs15.11 billion in the corresponding period of the last year.
However, the bank recorded 61 percent growth in fee and commission income to Rs2.06 billion for the quarter ended March 31, 2021 as compared with Rs1.28 billion in the same quarter of the last year.
Total income of the income for the quarter under review increased to Rs18.61 billion as compared with Rs17.91 billion in the corresponding quarter of the last year.
The operating expenses of the bank increased to Rs7.83 billion during January – March of 2021 as compared with Rs6.8 billion in the same period of the last year.
Meezan Bank declared Rs4.31 as earnings per share (EPS) for the quarter ended March 31, 2021 as compared with Rs3.89 in the same quarter of the last year.
ISLAMABAD: Securities and Exchange Commission (SECP) on Tuesday issued a notification to revise previous SRO regarding list of persons to whom any instrument in the nature of ‘redeemable capital’ may be issued by a company.
The SECP notified the following persons to whom any instrument in the nature of “redeemable capital” may be issued by a company, subject to the terms and conditions as provided under section 66 of the Act, namely:-
(i) mutual funds, Voluntary Pension Schemes and Private fund being managed by NBFC;
(ii) insurer registered under the Insurance Ordinance, 2000 (XXXIX of 2000);
(iii) a Securities Broker;
(iv) a Fund and Trust as defined in the Employees Contributory Funds (Investment in Listed Securities) Regulations, 2018;
(v) a company and body corporate as defined in the Companies Act, 2017(XlX of 2017);
(vi) all individual investors including accredited individual investors, in case of Government Debt Securities, and debt securities whose debt servicing is guaranteed by the Government;
(vii) accredited individual investors, in case of corporate debt instruments: Provided that the company shall ensure the following:
(a) instrument is not placed to more than fifty (50) accredited individual investors;
(b) information memorandum contains all applicable information/disclosures as prescribed under the Public Offering regulations, 2017; and
(c) instrument is not sold to non-accredited investors in secondary market.
Explanation: – for the purposes of this notification the expressions, –
(a) “accredited individual investor” means an individual investor registered with National Clearing Company of Pakistan Limited and having net assets of Rs. 5 million or more; and
(b) “Government Debt Securities” means a debt security such as Treasury Bill (T-Bill), Pakistan Investment Bond (PIB), Government of Pakistan (GoP) Ijarah Sukuk and any other debt instrument issued by the Federal Government, Provisional Government, Local Government/Authority, and any other statutory body.
ISLAMABAD: Directorate of Intelligence and Investigation (I&I), Customs, Regional Office, Multan announced auction of confiscated vehicles lying in State Warehouse to be held on April 22, 2021.
Following vehicles will be presented for the auction;
01. Honda Civic Car, Model 2008, Chassis No. JHMFD36209S200819
02. Toyota Prius Car, Model 2007, Chassis No. NHW20-0004804
03. Toyota Probox Car, Model 2004, Chassis No. NCP50-0027535
04. Hino Ranger Truck, Model 1991, Chassis No. FD3WDA-11415
05. Toyota Land Cruiser (Prado), Chassis No. 1998, Chassis No. VZJ95-0039067
06. Honda Inspire Car, Model 2004, Chassis No. UCI-1006426
07. Toyota Vitz Car, Model 2003, Chassis No. SCP13-0030360
08. Toyota Passo Car, Model 2010, Chassis No. KGC30-0018737
09. Toyota Prius Car, Model 2004, Chassis No. NHW20-0111242
10. Suzuki Jimmy Jeep, Model 1998, Chassis No. JB33W-104888
11. Toyota Vitz Car, Model 2003, Chassis No. SCP10-0446278
12. Toyota Vitz Car, Model 2003, Chassis No. SCP13-0016761
13. Hino Ranger Truck, Model 1993, Chassis No. FD3HLA-31038
14. Toyota Prius Car, Model 2009, Chassis No. ZVW30-5023030
15. Toyota Vitz Car, Model 2003, Chassis No. SCP130019176
16. Toyota Altis Car, Model 2015, Chassis No. MR053REH205282314
17. Toyota Aqua Car, Model 2012, Chassis No. NHP10-6023466
18. Honda Civic Reborn Car, Model 2007, Chassis No. JHMFD16308S212954
19. Toyota Axio Car, Model 2010, Chassis No. NZE141-6165377
20. Toyota Esta 7 Seaters, Model 2002, Chassis No. ACR40-0055237
ISLAMABAD: Tax authorities have prioritized real estate sector for documentation of economy during next three years for increasing share of direct taxes in revenues.
The Medium Term Budget Strategy Paper for 2021/2022 to 2023/2024 issued by the ministry of finance stated that all out efforts are being made to increase the share of direct taxes in revenues.
“Documentation of economy to increase the taxation in services, real estate and wholesale and retail is top priority,” it added.
According to the paper the use of information technology is the corner stone of strategy of Federal Board of Revenue (FBR) for mobilization of revenues.
It aims at automation of all business processes starting from registration to assessment and issuance of refunds.
Installation of the ‘Track and Trace’ system, point of sale integration of retailers with FBR’s computerized system, e-audit and e-appeals are at various stages of implementation and would be fully operational in the medium term.
KARACHI: Habib Bank Limited (HBL) on Tuesday announced 108 percent increase in profit for the quarter ended March 31, 2021. The profit after tax of the bank increased to Rs8.56 billion during the first quarter (January – March) 2021 from Rs4.11 billion in the same quarter of the last year.
Analysts at Insight Research said that the results of the bank were above expectation.
“The result is above our expectation of Rs4.3/share as net interest income and non-markup income came in higher from our expectations. The result is also accompanied by a cash dividend of Rs1.75/share,” they said.
Net interest income (NII) increased by 16 percent/4 percent YoY/QoQ to clocked-in Rs32.4 billion, possibly due to lagged impact of repricing and balance sheet expansion. However, we await detailed account for further clarity in this regard.
Non-Markup income increased by 42 percent/26 percent YoY/QoQ to clocked-in at Rs8.2 billion. This is primarily led by a higher fee income which increased by 25 percent YoY, while recovery of income in FX operations and derivatives further fueled non-markup income.
Bank has booked provision of Rs1.9 billion against a provision of Rs0.62 billion booked in SPLY. To note, HBL has booked hefty provisioning in both general and specific categories during CY20 (Rs12.2 billion).
Operating expenses witnessed a contraction of 7 percent YoY, to clocked-in at Rs24.2 billion, attributable to a reduction in business transformation cost.
Effective taxation remained at 41 percent during the quarter as compared to 42 percent in SPLY.
KARACHI: The stock market gained 486 points on Tuesday on health corporate results, analysts said. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 45,400 points from last day’s closing of 44,914 points, showing an increase of 486 points.
Analysts at Arif Habib Limited said that the market went up by 645 points during the session and closed the session +459 points on account of a host of corporate result announcements scheduled for today.
Although the results of key companies posted healthy growth, the pertinent stock prices did not respond in the same fashion.
Among the key results announced at the bourse today were HBL, ISL, ASL, MEBL however, the price performance remained muted. ASL on the other hand went down post announcement due to selling pressure.
Govt.’s resolution of the law and order situation regarding TLP somewhat allayed Investors fear. Technology stocks, particular TELE and TRG helped change the sentiment tide early on, when TRG announced material information regarding one of its subsidiaries, which resulted in the scrip showing bids at upper circuit in the pre-open session. Among scrips, WTL led the table with 56.6 million shares, followed by UNITY (30.6 million) and GGL (24.6 million).
Sectors contributing to the performance include Technology (+121 points), Banks (+78 points), Cement (+37 points), Fertilizer (+35 points) and Textile (+26 points).
Volumes dipped from 363 million shares to 343.3 million shares (-6 percent DoD). Average traded value however, increased by 10 percent to reach US$ 92.9 million as against US$ 84 million.
Stocks that contributed significantly to the volumes include WTL, UNITY, GGL, TRG and TELE, which formed 42 percent of total volumes.
Stocks that contributed positively to the index include TRG (+124 points), HBL (+36 points), UNITY (+25 points), LUCK (+21 points) and COLG (+20 points). Stocks that contributed negatively include MARI (-12 points), EPCL (-11 points), MCB (-7 points), POL (-6 points) and NRL (-3 points).
KARACHI: The Pak Rupee weakened by six paisas against dollar on Tuesday owing to demand for import and corporate payments.
The rupee ended Rs152.99 to the dollar from previous day’s closing of Rs152.93 in the interbank foreign exchange market.
Currency dealers said that the market witnessed demand from corporate buyers as foreign companies were sending their profit and dividends to their parent companies abroad.
Further, seasonal demand for import payments is also seen during the day.
The dealers said that the local currency likely to make gain against the dollar in coming days due to substantial inflows of foreign currency in shape of export receipts and workers’ remittances.
ISLAMABAD: The payment of benevolent grant and group insurance fund would be made through only valid account opened at concerned branch of National Bank of Pakistan (NBP), a statement said on Monday.
All those beneficiaries who are taking benevolent grant from the Federal Employees Benevolent and Group Insurance Fund (FEB & GIF) are hereby informed that in order to ease out the difficulties being faced by the beneficiaries, while drawing benevolent grant from National Bank of Pakistan, the BoT, FEB & GIF has decided that w.e.f. 1″ July, 2021 the amount of the monthly Benevolent Grant will be paid to the beneficiaries through valid account nos. to be opened with the concerned branches of the National Bank of Pakistan instead of cash payment.
All the beneficiaries of monthly benevolent grant are hereby requested to open a Bank Account with the concerned Branch of the National Bank of Pakistan on or before 31.5.2021, if they have not opened yet.
After opening the account the same may be communicated to FEB & GIF through bank as per following format: Benevolent GrantCase No. (copy of blue color payment order card including CNIC of the beneficiary may also be attached) CNIC of Employee Name of Beneficiary CNIC of Beneficiary Account No. of Beneficiary (10- digits Account No.) Name of Branch of NBP with Code (4- digits code) Amount of Monthly grant (Rs.) Date & amount of last payment made by NBP.
KARACHI: The influx of foreign direct investment (FDI) into Pakistan has plummeted by 35 percent during the first nine months (July – March) of the fiscal year 2020/2021, as per data released by the State Bank of Pakistan (SBP) on Monday.
KARACHI: State Bank of Pakistan (SBP) on Monday issued mechanism for payment of markup subsidy for housing finance and issued instructions to banks and development financial institutions (DFIs) for the facility.
The SBP advised banks to submit their claims to Development Finance Support Department (DFSD), SBP BSC, Karachi as per instructions contained in the attached payment mechanism within 15 working days from the end of each Quarter.
However, the banks shall submit their claim within 15 working days for the quarter ending December 2020 and March 2021 from the date of issuance of this circular.
According to markup subsidy payment mechanism (MSPM), the SBP said that the government had issued markup subsidy scheme to provide concessional housing finance for promoting home ownership.
The SBP issued necessary instructions to all commercial banks, microfinance banks and HBFCL through a circular no. 03 dated March 25, 2021 and revised instructions issued from time to time.
All loans disbursed under the scheme shall be reported to SBP under housing finance.
Under the Scheme, loans are segregated into four tiers:
i. Tier 0 (T0) – (a) House up to125 sq yds (5 Marla) and (b) flat/apartment with maximum covered area of 1,250 sq ft.
ii. Tier 1 (T1) – (a) House up to125 sq yds(5 Marla) with maximum covered area of 850 sq ft and (b) Flat/apartment with maximum covered area of 850 sq ft.
iii. Tier 2 (T2) – (a) House up to125 sq yds (5 Marla) and (b) flat/apartment with maximum covered area of 1,250 sq ft.
iv. Tier 3 (T3) – (a) House up to250 sq yds (10 Marla) and (b) flat/apartment with maximum covered area of 2,000 sq ft.
Pricing for Housing Loans
Loan Tiers
Customer Pricing
Bank Pricing
Tier 0
5% for first 5 years & 7% for next 5 years
1 Year KIBOR + 700 BPS
Tier 1
3% for first 5 years & 5% for next 5 years
1 Year KIBOR + 250 BPS
Tier 2
5% for first 5 years & 7% for next 5 years
1 Year KIBOR + 400 BPS (Spread may vary)
Tier 3
7% for first 5 years & 9% for next 5 years
1 Year KIBOR + 400 BPS (Spread may vary)
For loan tenors exceeding 10 years, market rate i.e. bank pricing will be applicable for the period exceeding 10 years.
Procedure for loans disbursements and availing markup subsidy:
EAs shall evaluate financing applications of customers as per parameters of Markup Subsidy Scheme for Housing Finance approved by the Federal Cabinet and circulated by the State Bank of Pakistan to all banks/DFIs vide IH&SMEFD Circular No. 03 dated March 25, 2021 and revised from time to time. The financing facility for a borrower shall be sanctioned and disbursed by the EA after completion of documentation formalities. These financing shall be entitled for markup subsidy as prescribed above. No further evaluation on eligibility of borrowers would be conducted by the State Bank of Pakistan.
Calculation of Equally Monthly Installment (EMI) for Borrower
For first five years EMI, amortization schedule would be prepared for full tenor of financing at markup rate i.e. 3 percent, 5 percent or 7 percent depending upon the financing tier.
EMI for next five years i.e. 6th year to 10th year would be on the basis of amortization schedule prepared at the applicable subsidized markup rate (i.e. 5 percent, 7 percent or 9 percent depending upon the financing tier) on outstanding principal for remaining financing tenor.
After 10th year of financing, EMI would be calculated on the basis of amortization schedule at applicable markup rate.
Calculation of Markup Subsidy for Banks
After calculating the EMI for end user, the EAs will calculate the difference to be paid by Government of Pakistan by applying the difference between 1-Year KIBOR + spread and end user markup rate on the outstanding principal.
The banks will calculate the subsidy for the period of markup subsidy i.e. 10 years.
Mechanism for Payment of Markup Subsidies: Payment of subsidy to EAs will be made through SBP’s operational arm viz. Development Finance Support Department (DFSD), SBP BSC, Head Office, Karachi.
The executing agencies (EAs) / banks shall prepare and submit claims on quarterly basis to DFSD for receiving government markup subsidy on outstanding principal amount of their performing housing finance portfolio up to expiry of each individual loan. In case of a loan becoming non-performing, no markup subsidy will be paid after being classified as ‘Loss’ as per SBP PRs for Housing Finance. The EAs claims shall contain particulars of each individual loan along with calculations of subsidy based on relevant 1-year KIBOR used. For the sake of simplicity, EAs shall assign unique number to each loan i.e. “Bank Name—Loan Number” (ABC-12345678). The markup subsidy claim should be duly vetted by internal audit department of the EA. The audited claim along with a certificate from EA relating to eligibility of borrowers for the subject scheme and correctness of the subsidy amount shall be submitted to DFSD within 15 working days after the end of respective quarter for payment of subsidy. The claims shall be submitted to DFSD as per the format attached as Annexure B (Annexure B-1 for Banks/DFIs and Annexure B-2 for MFBS).
DFSD, SBP BSC shall scrutinize subsidy claim of EAs within 15 working days after receipt of complete information from EAs. DFSD shall ascertain that calculations of EAs subsidy claim are correct and applicable KIBOR has been used by the EAs. Thereafter, DFSD shall submit scrutinized claims to Accounts Department, SBP BSC for release of funds, through Karachi Office, to respective EA account maintained with SBP BSC, Karachi from Government account ‘Non-Food Account 1’.
Banking Inspection Department of State Bank during regular inspection of the EAs shall conduct inspection of their housing finance portfolio on sampling basis using its own sampling techniques. SBP inspectors shall randomly select credit files and review them from the perspective of eligibility of borrowers under the Program, status of loan (regular or NPL) and GOP subsidy claim. The BID inspection report section on ‘Markup Subsidy on Housing Finance’ shall be used as an important input for reviewing the Scheme and assessing its effectiveness in fulfilling the Government objective of promoting home ownership in the country.
